Iceland volcano: how to manage stranded staff

Published: 21 April, 2010

UK: The Forum of Private Business is advising employers of smaller companies affected by the eruption of the volcano in Iceland to be flexible with stranded staff – but to know when to draw the line on unpaid leave.

Many small businesses continue to struggle in the wake of the worst recession in a generation. Employers should be aware of the impact on cashflow of a drop in productivity due to employee absence.

Unless remote working is an option, businesses could offer staff discretionary paid leave for a fixed period, FPB advised. However, there is no compulsion to do so and this should be followed by an offer of unpaid leave or suggesting that absent workers take additional holidays covering the period they are away.

"Keep in touch so you have all the information about your employees and their travel situation," said FPB's employment advisor Ross Meadows, of Mace and Jones Solicitors.

As part of its HR Director business support solution, FPB publishes an annually updated employment guide, which is also available online.

Written by Employment Law Advisory Services, it takes businesses step-by-step through the every aspect of employing a person and complying with the law.

According to new research from Direct Line for Business (DL4B), one in five SMEs in the UK has been encouraged to expand following the Government’s decision to introduce an Employment Allowance of £2,000 a year towards employer National Insurance (NI) contributions.